Islamabad, Wednesday

AFGHANISTAN'S two main warring rivals met for their first peace talks

in months in Islamabad today and agreed on a peace formula that will

allow them to share power in Kabul, officials said.

President Burhanuddin Rabbani shook hands with Gulbuddin Hekmatyar,

chief of the hardline dissident Hezb-i-Islami party, at the Prime

Minister's House in Islamabad before sitting down to discuss a

Pakistani-proposed peace formula.

''The level of sincerity for the understanding reached gives assurance

that whatever was decided will be implemented,'' Rabbani's spokesman

Aziz Morad said in an interview.

The fundamentalist leaders were brought together by Pakistani Prime

Minister Nawaz Sharif to try to negotiate an end to months of bitter

fighting in Kabul that has killed and injured thousands.

Hekmatyar had previously refused to meet Rabbani in his capacity as

president, but only as leader of his Jamiat-i-Islami party, and the two

had not met since last September.

Under the draft accord, to be agreed also by the other main mujahideen

parties, Rabbani remains president for several months while Hekmatyar

becomes prime minister.

''Engineer Hekmatyar is ready to take up the post of prime minister

and if there are no objections by the other groups, we see no difficulty

to that effect,'' Morad said.

A few small differences remained, he said.

Rabbani was insisting on recognition of the assembly of nationwide

delegates that last December elected him as president for the next two

years, but conceded to Hekmatyar's demand for general elections before

his term expired, he said.

Hekmatyar has accused Rabbani of rigging his election, and subjected

Kabul to a fierce rocket and artillery bombardment to back his demand

that Rabbani step down to make way for an interim government.

''We can't refute the possibility that the government of Afghanistan

will demonstrate flexibility in favour of peace and stability,'' Morad

said, hinting that Rabbani may agree to step down earlier.